Buying a house made easy: everything you need to know about completing the purchase

A house of your own, right? For many of us, this is a big dream. It stands for security, stability and the freedom to design it exactly the way we want it. If you're reading this article, you're probably on the verge of making this dream come true. You've already found the right property for your home purchase and the financing is in place. Now you're ready for the next big step: closing the deal.

In this article, we'll take you through the final stages of your journey to home ownership. From the contractual details to the final notarization - we've summarized all the important points for you so that you know exactly what to expect. Our aim is to make your journey to your new home as pleasant and stress-free as possible.

The most important things in a nutshell

• The house purchase process is accompanied by a notary who will help you understand the complexity of the purchase contract and assist you with any unanswered questions.
• After the purchase contract has been signed, the buyer is entered in the land register to make the ownership status official. The notary takes care of the details and ensures that everything is done correctly.
• When buying a house, there are additional costs such as land transfer tax, notary fees, land registry costs and estate agent commission. It is important to obtain detailed information about all possible additional costs in advance in order to avoid unexpected costs.
• It is also important to take out various insurance policies to protect your new home and your financial security. This includes building insurance, household contents insurance, home legal expenses insurance and personal liability insurance.
• The home buying process can be complex, but with the right preparation and support, it can be an enriching and rewarding experience.

The 11 steps to closing a purchase

Step 1: Selecting a notary

The purchase of a property in Germany requires notarization by a notary. As a buyer, you have the option of selecting the notary yourself. It is advisable to choose a notary who is familiar with the real estate sector, as they can best accompany the purchase process. The notary adopts a neutral position and advises both the buyer and the seller equally. Your real estate agent often has good notary recommendations that you can fall back on.

You don't have to worry about the costs. These are set by law and are therefore the same for all notaries. This means that you don't have to expect any additional costs, regardless of which notary you choose.

In summary, it is important that you take your time when choosing a notary and make a well-informed decision. It is a crucial step in the real estate purchase process.

Step 2: The draft contract

The next step in the purchase process is the draft contract. This is where the notary you have selected takes on a key role. They prepare the draft contract and ensure that all legal aspects are covered.

The notary's fees also cover advice on the contract. This is a great advantage for you. You should definitely take advantage of this opportunity and seek advice from the notary. Ask any questions you may have and make sure that any ambiguities are cleared up before you sign the contract.

It is important that you understand everything in the contract. Therefore, take the time to go through all the details with the notary. He is there to help you and answer your questions. This step is very important to ensure that you can enter into the purchase process with complete confidence.

Step 3: Preparing for the notary appointment

Now it's time to prepare for the notary appointment. Both the notary and the real estate agent are actively involved here. The notary requires some important data, such as information about maintenance reserves in homeowners' associations, which he usually receives from the real estate agent.

Often, a land charge must be registered for the financing bank. For this, the notary needs special documents, the land charge documents. Your real estate agent will take care of these by requesting them directly from the credit institution, or you can get them from your bank and then forward them to the notary.

It is very important that all the necessary documents arrive at the notary's office completely and on time so that he can carefully prepare for the notary appointment. Make sure you have everything in place and the necessary documents ready. This will help ensure a smooth process and avoid possible delays.

Step 4: The notarization

The next important step is the notarization. If the purchase is between two private consumers, you do not have to observe any specific deadlines. The situation is different if you are buying from a developer. In this case, there must be a minimum period of 14 days between receiving the draft contract and the notarization.

The notarization appointment usually takes place in person. At this appointment, the notary reads the contract in full to both parties. This is your chance to ask any questions and clarify any ambiguities. At the end of this meeting, the contract is signed by all parties.

But even after signing the contract, the purchase is not yet complete. The entire process can take a few more weeks before you can finally call yourself the new owner. So be patient, it won't be long now!

Step 5: The priority notice of conveyance

The next step is to enter the so-called priority notice of conveyance in the land registry. This usually happens immediately after the notary appointment, with the notary organizing this process for you.

The priority notice of conveyance is basically like a reservation for your property in the land registry. This prevents the seller from selling the property again during the ongoing purchase process. It is therefore an important step to secure your purchase and make it go smoothly!

Step 6: The land charge order

The next step on the way to your new property is the land charge order. This is necessary to protect the financing bank and is entered in the land registry.

The land charge order documents required for this are usually provided by your lender. You, as the borrower, sign these documents and the notary certifies them. The seller does not have to be present for this process, as it only concerns you as the buyer.

To simplify the process and to only have to go to the notary once, it makes sense to have the land charge order notarized directly after the purchase contract. The notary then submits the land charge order to the land registry. This is how everything is set in motion to make you the owner soon!

Step 7: The land transfer tax

After that, the land transfer tax is paid. The notary informs the tax office about the real estate transaction, since in Germany every real estate transaction is subject to land transfer tax.

After a few days, you will usually receive a letter from the relevant tax office asking you to pay the land transfer tax. The tax rate varies from state to state, but we could insert a table of land transfer taxes by state here to give you an overview.

Once the tax is paid, the tax office will issue a so-called tax clearance certificate. This document is a requirement for completing the purchase. It confirms that you have fulfilled all tax obligations related to the property purchase and that another step on the way to ownership has been checked off.

Step 8: Clearing any prior encumbrances

Now it's time to clear the property of any possible prior encumbrances, since you as the buyer normally want to take over the property “free and clear”.

To ensure this, the notary obtains so-called deletion approvals. These serve to remove old encumbrances from the land registry so that you can take over an unencumbered property. This is another important step to ensure that your new property is free of old liabilities and that you can look forward to your dream of home ownership without worry!

Step 9: The Due Date Notice

The next step in your journey to home ownership is the so-called due date notice. As soon as all conditions for the purchase have been met, the notary will issue this important document.

The maturity notice is basically a request for payment to you as the buyer. From this point on, you usually have two weeks to pay the purchase price to the seller. So this is the moment when the sales process gets off the ground financially.

Step 10: The Transfer

Now comes a crucial step on the way to your new property – the transfer of the purchase price. Normally, you first transfer your equity share directly to the seller. Once that has been done, the bank will also forward the loan amount directly to the seller.

If the seller still has an outstanding mortgage on the property, the amount due will be transferred directly to the seller's bank. The remaining amount is then transferred to the seller.

This transfer usually marks the transfer of ownership. From this moment on, you may use the property and also bear the risk. It's a big step, but one that brings you significantly closer to realizing your dream of home ownership!

Step 11: Land Registry

Finally, the last step is to register the property in the land registry. As soon as the seller has confirmed that the money has been received in his account, the notary will start the process of transferring ownership.

Depending on the land registry, this process can take a few weeks until your name actually appears in the land registry. Technically, the seller remains the owner of the property during this time, but you are usually protected by the purchase contract.

The big moment comes as soon as you are entered in the land registry – then you are officially the owner! It is the end of an exciting journey and the beginning of your new life as a proud property owner. Congratulations!

What additional costs can you expect?

When buying a house, you have to expect some additional costs, often these are due shortly after the notary appointment. You can expect the following costs:

• The land transfer tax:

Depending on the federal state, a land transfer tax of between 3.5% and 6.5% of the purchase price is due when you buy a property. You can find more information about land transfer tax here.

• Notary fees and land registry costs when buying a house:

Buying a house is not only a big step, but also a formal procedure that must be notarized. What does that mean for you? It's quite simple: the contract of sale is read out by a notary in the presence of you and the seller. As soon as everything has been clarified, you and the seller put your signatures under the contract – of course, everything is done under the watchful eye of the notary. But don't worry, these costs are calculated according to a fixed scale of charges.

And what happens after that? Well, next you will be entered in the land registry as the legal owner of the house. Further entries will follow, such as a priority notice of conveyance and, in most cases, the land charge entries of your financing bank. Please note that land registry costs may vary from region to region.

• Broker's commission:

If the property was sold by a real estate agent, a commission is due, which is split between the buyer and seller.

• Other possible additional costs:

In addition to the usual monthly costs associated with buying a house, there are also some additional expenses that you should take into account. These are not always regular, but they can still make up a significant portion of your budget.

For example, think of modernization costs. Renovations or refurbishments, especially for older houses, can be quite expensive. That's why it's important to include a certain amount of leeway for such measures in your budget plan.

But the costs for repairs and maintenance can also arise unexpectedly and put a strain on the budget. And even services such as gardening can incur additional costs.

It is therefore advisable to find out in advance about all possible additional costs. This will help you plan your budget and avoid unexpected costs. Thorough preparation can help you make an informed decision and avoid unpleasant surprises.

What insurance do I need for my new home?

Owning your own home also means protecting yourself from unexpected damage. Therefore, it is advisable to find out about various insurance policies that can help protect your new property.

• Building insurance: This is one of the most important insurance policies you should take out as a homeowner. Building insurance covers damage to the house itself, for example, due to fire, storm, hail or tap water. It therefore comes into effect if, for example, there is a fire or the roof is damaged by a storm.
• Homeowners insurance: While homeowners insurance protects your house, homeowners insurance takes care of your belongings inside the house. This includes everything from furniture and appliances to personal items such as jewelry or clothing. The insurance covers damage caused by fire, burglary, vandalism, water pipes or natural disasters.
• Homeowners legal expenses insurance: Legal disputes can quickly become expensive. With homeowners legal expenses insurance, you are covered against legal risks that may arise in connection with your property. For example, it covers the costs of a lawyer or legal proceedings.
• Personal liability insurance: This insurance is not specific to homeowners, but it is still extremely important. It covers damages that you accidentally cause to other people or their property. For example, if you employ a tradesperson in your home and they are injured, personal liability insurance can cover it.

Choosing the right insurance can help you protect your new home and your financial security. Shop around and compare offers to make the best decision for your particular situation. It's always better to be on the safe side and prepared when the unexpected happens.

Summary: The advantages of buying your own home

Buying your own home is an important milestone in your life. It represents security and stability and offers you the opportunity to design a space entirely according to your own ideas. With this article, we would like to accompany you on your exciting journey towards buying a home. Our goal is to inform you in the best possible way and prepare you to make your dream of home ownership a reality.

Buying a house has many advantages. Aside from the personal satisfaction you'll feel, your house can be an excellent investment that increases in value over time. It also offers you the chance to create a legacy for future generations.

In this article, we have tried to give you a comprehensive overview of the home buying process. From choosing a notary to signing the purchase contract, the importance of the land registry, to the associated costs and necessary insurance. Each of these steps is crucial to ensuring that your home purchase goes smoothly and successfully.

It is important to emphasize that you are not alone throughout the entire home-buying process. There are numerous experts, from real estate agents to notaries to bank advisors, who are there to help you and support you in your home purchase.

In short, buying a home can be a complex process, but with the right preparation and support, it can be an enriching and rewarding experience. At the end of the road, the ultimate reward awaits: your own home, where you can create new memories and fulfill your personal dreams. Buying a home is an adventure, and we are here to help you along the way.

In this article, we have tried to give you a comprehensive overview of the home buying process. From choosing a notary, signing the purchase contract, the importance of the land registry, to the incidental costs and necessary insurances. Each of these steps is crucial to ensure that your home purchase goes smoothly and successfully.

It's important to emphasize that you are not alone throughout the home buying process. There are numerous experts, from estate agents and notaries to bank advisors, who will be on hand to help you with your home purchase.

In short, buying a home can be a complex process, but with the right preparation and support, it can be an enriching and rewarding experience. At the end of the journey, the ultimate reward awaits: your own home, where you can create new memories and realize your personal dreams. Buying a home is an adventure and we're here to help you along the way.